Remortgaging vs Staying Put: What’s Really Best?

Thinking about remortgaging or staying with your lender? Discover the pros and cons of each option and what’s really best for you.

When your mortgage deal comes to an end, you face a choice: stay with your current lender or remortgage to a new one. At first glance, staying put may feel easier, but is it really the best option?

This guide breaks down both sides so you can make the decision that’s right for your home and your finances.

Why people stay with their current lender

Staying put is simple. A product transfer often involves less paperwork, no new affordability checks, and a quicker process. It may feel stress-free compared to switching lenders.

The limits of staying put

Convenience can come at a cost. Your current lender may not offer the best rate available. By only looking at what they provide, you could miss out on savings elsewhere.

The benefits of remortgaging

Remortgaging opens up the entire market. With more lenders to choose from, you can often secure a lower rate or better features. Over the life of your mortgage, even a small difference in interest can save thousands.

Costs to consider when remortgaging

Switching lenders can involve arrangement fees, valuation fees, and legal costs. Some deals cover these expenses, but it’s important to weigh the savings against the upfront costs.

When remortgaging makes the most sense

If your property has risen in value, you may qualify for a lower loan-to-value bracket. If your fixed rate is ending, or if you are on the SVR, remortgaging is often the best move.

When staying put could be right

If you only have a short time left on your mortgage, or your circumstances make switching difficult, a product transfer may be sensible. Sometimes the simplest option is the right one.

The Bottom Line

There is no one-size-fits-all answer. The best choice depends on your balance, your goals, and your long-term plans. What matters most is comparing the options before deciding.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.

• Is it cheaper to remortgage or stay with my lender?

  It depends. Remortgaging often offers lower rates, but a product transfer can sometimes be competitive.

• Will I need to go through affordability checks again?

  Usually yes if you remortgage, but not always with a product transfer.

• Are there fees for remortgaging?

  There can be, but many deals include free valuations or legal work to reduce the cost.